PSA Company Profile

We believe that the Company possesses several primary business attributes that permit us to compete effectively:

COMPREHENSIVE DISTRIBUTION SYSTEM AND NATIONAL TELEPHONE RESERVATION SYSTEM:  Our facilities are part of a comprehensive distribution system encompassing  standardized procedures, integrated reporting and information networks and centralized  marketing. During 2003 and 2004, we implemented an upgraded information system  platform, which has enabled us to more quickly adapt our pricing and marketing efforts to market conditions. This distribution system, among other benefits,  is designed to maximize revenue and occupancy
levels through automated pricing.

A significant component of our distribution system is our national telephone  reservation center, which provides added customer service and helps to maximize  utilization of available self-storage space. Customers calling either the toll-free  telephone referral system, (800) 44-STORE, or a storage facility, are directed to the national reservation system. A representative discusses with the customer space requirements, price and location preferences and also informs the customer of other products and services provided by the Company and its subsidiaries.  We believe that the national telephone reservation system enhances our ability to market storage space.

RETAIL OPERATIONS: The Company has historically sold retail items associated  with the storage business and rented trucks at its storage facilities. In order to supplement and strengthen the existing self-storage business by further meeting  the needs of storage customers, the Company continues to expand its retail activities.

In addition, full-service retail stores have been retrofitted to some existing  storage facility rental offices or "built-in" as part of the development of new storage facilities, both in high traffic, high visibility locations.  The strategic objective of these retail stores is to provide a retail environment to (I) rent spaces for the attached storage facility, (II) rent spaces for the other Public Storage facilities in adjacent neighborhoods, (III) sell locks,  boxes and packing materials and (IV) rent trucks and other moving equipment.

TENANT INSURANCE PROGRAM: On December 31, 2001, we purchased all of the capital stock of PS Insurance Company, Ltd., from Mr. Hughes and members of his family. This insurance company reinsures policies issued to our tenants against lost or damaged goods stored by tenants in our storage facilities. This subsidiary  receives the premiums and bears the risks associated with the re-insurance. We believe that this insurance operation will continue to further supplement  and strengthen the existing self-storage business and provide an additional source of earnings for the Company.

COMPETITION

Competition in the market areas in which we operate is significant and affects the occupancy levels, rental rates and operating expenses of certain of our  facilities. Development of new storage facilities has intensified the competition among storage operators in many market areas in which we operate.

In seeking investments, we compete with a wide variety of institutions and other investors. The increase in the amount of funds available for real estate investments has increased competition for ownership interests in facilities and may reduce yields on acquisitions.

We believe that the significant operating and financial experience of our executive  officers and directors, combined with the Company's capital structure, national investment scope, geographic diversity, economies of scale and the "Public  Storage" name, should enable us to compete effectively with other entities.